Business Structure Advice

Discussion in 'Growing and Managing a Business' started by djmusic5, Sep 5, 2012.

  1. djmusic5

    djmusic5
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    I need some advice on how to go about forming a business for my scenario.

    I am partnering with someone, who has an established business 10+. I am bringing my business managment background into the picture and handle the back end, where as my partner will handle the front end of everything. From here on we are going to be invested in all business expenses/acquisitions 50/50. We are trying to workout % for salary, profit, compensation etc. All of the clients were acquired by my partner over the years, although the assets/equipment that will be used are owned 50/50 by us now. He needs additional support (financial and personel) in order to grow the business. Does this entitle me to 50% of the profit or is my partner still entitled to a higher percentage since the clients were his to begin with?


    Secondly, we would like to take on a few employees who have essentially been freelancers. These freelancers have, over time, built their own client base (not to extensive, but enough to support themselves). By bringing them on we will provide the infrastructure and support that will allow them to grow and take on bigger jobs (that they would normally have to subcontract out work to others in order to complete.) with their clients as well as new ones, What is a good way of approaching this with them? Financially, we need to develop a plan that our business and them.


    any thoughts/advice is appreciated!! :)
     
  2. Fergal

    Fergal
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    Welcome to our business forum djmusic5 and thanks for posting your business questions.

    It is difficult to give a definitive answer on that, without knowing more specific details of the situation. Have you suggested 50% to your partner? If so what was his view on that?

    If you feel that you should get 50%, it might be helpful to suggest that percentage to your partner and get his feedback as to whether or not he also thinks that's fair.

    As regards to your prospective future employees, I'd suggest you approach each one of them individually. Outline the potential benefits to them and then ask if they would be interested in working for you for a salary. You will learn a lot as you talk to each of the individuals involved and this knowledge will help you tailor your approach to the next individual you speak to.

    Sorry I can't give you more definitive answers, perhaps some of our other members will be able to give you more helpful suggestions.
     
  3. kennyschwimmer

    kennyschwimmer
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    Are you also thinking of having a website created for your business? I am saying this because thats a very good and suggested idea.
     
  4. Mark T

    Mark T
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    No definite answers for you to as both of you will have to decide on that matter - but I suggest that both of you should talk to a financial analyst / advisr which may help you determine how both of your will share the company profit.
     
  5. senecaave

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    Hi,

    Can you provide valuable tips for our business?
     

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